Fpl Should Reduce Base Rates By 9 Percent, Says Consumer Advocate

The Office of Public Counsel will recommend today that FPL reduce its base rates by $364 million -- or about 9 percent -- instead of increasing them.

FPL collects $3.7 billion to $3.9 billion for base rates and proposes collecting about $1.3 billion more. If approved, FPL customers that use 1,000 kilowatt-hours per month -- less than what the average customer uses -- could pay as much as $12.40 more a month beginning next year if customer-fuel charges don't decline as projected. Under the office's proposal, they would likely drop by at least a few dollars a month.

Representatives from the office, the state's advocate for utility customers, said Thursday that FPL's requested profit margin is too high and that it over-collected $2.75 billion from customers for equipment depreciation. The office recommends FPL return $552 million in depreciation-related costs over the next four years.

"The degree to which customers overpaid is so severe that steps should be taken to reverse that," said Associate Public Counsel Joe McGlothlin.

FPL spokesman Mayco Villafana said projected drops in fuel costs will more than offset the requested base rate increase and the base rates will help make FPL's infrastructure stronger, more efficient and less likely to emit greenhouse gases. "Our customer bills are already among the very lowest in Florida, and they will go down in 2010 based on projected fuel prices and as a result of our success in improving fuel efficiency through investments in our power plants."

The Public Service Commission will formally weigh FPL's proposal starting in August with a plan to vote in November.